diff --git a/docs/plugin_hooks.rst b/docs/plugin_hooks.rst
index 3b7364aeaa..4cd8317c17 100644
--- a/docs/plugin_hooks.rst
+++ b/docs/plugin_hooks.rst
@@ -1136,13 +1136,36 @@ jinja2_environment_from_request(datasette, request, env)
 ``datasette`` - :ref:`internals_datasette`
     A Datasette instance.
 
-``request`` - :ref:`internals_request`
-    The current HTTP request.
+``request`` - :ref:`internals_request` or ``None``
+    The current HTTP request, if one is available.
 
-``env`` - `Environment`
+``env`` - ``Environment``
     The Jinja2 environment that will be used to render the current page.
 
-... use overlays here
+This hook can be used to return a customized `Jinja environment <https://jinja.palletsprojects.com/en/3.0.x/api/#jinja2.Environment>`__ based on the incoming request.
+
+If you want to run a single Datasette instance that serves different content for different domains, you can do so like this:
+
+.. code-block:: python
+
+    from datasette import hookimpl
+    from jinja2 import ChoiceLoader, FileSystemLoader
+
+    @hookimpl
+    def jinja2_environment_from_request(request, env):
+        if request and request.host == "www.niche-museums.com":
+            return env.overlay(
+                loader=ChoiceLoader(
+                    [
+                        FileSystemLoader("/mnt/niche-museums/templates"),
+                        env.loader,
+                    ]
+                ),
+                enable_async=True,
+            )
+        return env
+
+This uses the Jinja `overlay() method <https://jinja.palletsprojects.com/en/3.0.x/api/#jinja2.Environment.overlay>`__ to create a new environment identical to the default environment except for having a different template loader, which first looks in the ``/mnt/niche-museums/templates`` directory before falling back on the default loader.
 
 .. _plugin_hook_filters_from_request: